STAFF at a North Yorkshire metal casting firm have been told they may face lay-offs or cuts in hours.

An internal memorandum at Micro-Metalsmiths Ltd, in Kirkbymoorside, tells workers it may introduce redundancies or shorter working hours to compensate for a lack of work.

The memo, leaked to the Evening Press, says the work shortfall was due to a drop in the value of orders for castings since last April.

The firm, which employs around 180 people, manufactures metal components for industrial use at its Ings Lane plant.

The memo says the only alternative to redundancies would be a reduction in the working week from five to three days.

"The company is hoping that if sufficient individuals within a department agree to the short-time working proposal then it can minimise and hopefully avoid having to make any redundancies," it adds.

The proposal is for staff to work a three day week - but be paid for 3.5 days - for a 13-week period.

Ryedale MP John Greenway said: "This is a first-class company and I don't think they would be making any redundancies unless it was absolutely necessary."

Updated: 10:48 Wednesday, January 23, 2002